Stock Analysis on Net
Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

$24.99

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Netflix Inc., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Operating income1 ÷ Revenues1
Dec 31, 2024 = 100 × ÷
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Dec 31, 2005 = 100 × ÷

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands

The financial data reveals significant growth and variability in operating income, revenues, and operating profit margin over the observed period.

Operating Income
Operating income showed a general upward trend from 2005 through 2024. Starting at 2,989 thousand US dollars in 2005, it increased substantially with notable peaks and fluctuations. By 2011, operating income reached 376,068 thousand US dollars but then dropped sharply to 49,992 thousand in 2012. After this dip, there was recovery and progressive growth, culminating in a peak of 10,417,614 thousand US dollars by 2024. This indicates overall expansion in profitability with some periods of volatility, particularly around 2012 and the years following 2021.
Revenues
Revenues consistently increased across the two decades. Beginning at 682,213 thousand US dollars in 2005, revenues more than doubled within five years, surpassing 3 million thousand US dollars by 2011. The growth continued steadily, reaching 15,794,341 thousand in 2018 and further climbing to 39,000,966 thousand by 2024. This continuous increase reflects a robust expansion in sales or service delivery.
Operating Profit Margin
The operating profit margin demonstrated an overall positive trend with some fluctuations. Starting very low at 0.44% in 2005, it improved steadily through 2009, reaching 13.12%. After a setback in 2012 where the margin dropped to 1.39%, the margin recovered gradually, achieving double-digit percentages from 2013 onwards. The margin peaked at 26.71% in 2024, indicating enhanced operational efficiency or better cost management relative to revenues over time.

Across all three metrics, the data suggests a company that has grown significantly in size with increased revenues and profitability. Despite occasional declines in operating income and profit margin, these were typically followed by recoveries and subsequent record levels. The rise in operating profit margin alongside revenue growth highlights improved operational leverage and effectiveness in generating profits from its expanding revenue base.

Comparison to Competitors

Netflix Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Netflix Inc. Alphabet Inc. Comcast Corp. Meta Platforms Inc. Take-Two Interactive Software Inc.
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Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).